1 thought on “Tobacco sales in Australia since plain packaging”

  1. Posted 17/03/2015 at 07:10 | Permalink

    I think that Lynton Crosby is worth every penny of what he was/is paid by the tobacco companies. Why?

    Well:

    1) The tobacco companies are sitting on some (currently) valuable brands and IP, but ones that are going to depreciate in value over the next few years as tobacco sales go down. Normally companies in this position would sell the brands and recoup any residual value – however, in this case it is difficult to see who would buy them. In that case the best course of action is to, effectively, sell them to the government. And plain packaging legislation does just that. Just about any (non political) court is going to side with them and award massive damages (possibly over 10 billion). Brilliant!

    2) It also helps to portray the tobacco companies as the underdogs – legitimate companies fighting against the tyranny of a ruthless government. Now that really takes some doing.

    Other side effects are:

    1) It has devalued the ‘brand’ of the public health fanatics. The majority of people in the UK did not see the necessity for (nor, indeed, want) this piece of worthless legislation. They will be further diminished when the bills for the court cases land on the exchequer’s doormat.

    2) It showed the majority of MPs giving the finger to a goodly chunk of the electorate – on the eve of an election. Class!

    3) It sends the message that the UK will not honor intellectual property rights. Let’s see the long term effects of that on inward investment.

    4) It puts the UK at odds with both the WTO and some important emerging markets.

    5) It will diminish any further public health initiatives when it is proven not to have worked (lots of pain – no gain)

    A brilliant day for democracy.

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